$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
charitable donation receipt fraud
Scammers sell fake charitable donation receipts to taxpayers seeking inflated deductions, or fraudulent charities issue inflated receipts for minimal donations to enable tax fraud.
“tax refund scam”
↑ 204%Key indicators
Usually targetsTaxpayers
Often hitsSmall business owners
Common regionUnited States
Last updated2026-04-04
Estimated impact
$960
median reported loss
Typical range$60 – $6.0K
Recovery rate~15%
Scam breakdown
1
Fraudulent organizations or online sellers advertise donation receipts that inflate the value of contributions, allowing buyers to claim larger tax deductions.
2
Some operate as fake charities, accepting small donations and issuing receipts for 5-10x the actual amount, splitting the tax savings with the donor.
3
The IRS audits the deduction, and the taxpayer faces penalties, interest, and potential prosecution for filing a false return.
What to do first
Verify any charity's tax-exempt status using the IRS Tax Exempt Organization Search at irs.gov/charities.
Related terms
fake charity receipt scaminflated donation deduction fraudTax season scamsWebsiteSurgingTaxpayersHigh-income filersSmall business ownersSmall business ownersTech workers and developersCreators and online sellersUnited StatesCanadafake charity receipt scaminflated donation deduction fraud
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Patricia, 35, a taxpayers, encountered what appeared to be a legitimate tax season scams situation while using Website. Fraudulent organizations or online sellers advertise donation receipts that inflate the value of contributions, allowing buyers to claim larger tax deductions.
Step 2
What happened next was calculated: Some operate as fake charities, accepting small donations and issuing receipts for 5-10x the actual amount, splitting the tax savings with the donor.
Step 3
The pressure escalated quickly: The IRS audits the deduction, and the taxpayer faces penalties, interest, and potential prosecution for filing a false return.
The outcome
Patricia realized something was wrong when charity offers donation receipts worth more than the actual amount donated. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Verify any charity's tax-exempt status using the IRS Tax Exempt Organization Search at irs.gov/charities. Patricia's experience shows why charity offers donation receipts worth more than the actual amount donated and organization is not listed on the irs tax exempt organization search tool are the clearest early warning signs.
How to identify it
- Charity offers donation receipts worth more than the actual amount donated
- Organization is not listed on the IRS Tax Exempt Organization Search tool
- Receipt lacks a proper EIN (Employer Identification Number) or organization address
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
- Treat secrecy, urgency, and off-platform payment requests as strong scam signals.
What to do now
- ✓Verify any charity's tax-exempt status using the IRS Tax Exempt Organization Search at irs.gov/charities.
- ✓Keep detailed records of all donations including bank statements and written acknowledgment from the charity.
- ✓Report suspected charity fraud to the IRS using Form 13909 (Tax-Exempt Organization Complaint).
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- The IRS revoked the tax-exempt status of over 200 organizations in 2024 for issuing fraudulent donation receipts, and criminal charges were filed in 34 cases.
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓Verify any charity's tax-exempt status using the IRS Tax Exempt Organization Search at irs.gov/charities.
- ✓Keep detailed records of all donations including bank statements and written acknowledgment from the charity.
- ✓Report suspected charity fraud to the IRS using Form 13909 (Tax-Exempt Organization Complaint).
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
The IRS revoked the tax-exempt status of over 200 organizations in 2024 for issuing fraudulent donation receipts, and criminal charges were filed in 34 cases.
IRS Exempt Organizations 2024 Annual Report
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. United States has dedicated agencies that handle fraud reports.
ReportFraud.gov
Federal Trade Commission
Central U.S. consumer fraud reporting portal.
File an IC3 complaint
FBI Internet Crime Complaint Center
FBI portal for internet-enabled crime reports.
Start identity theft recovery
IdentityTheft.gov
Official U.S. identity theft recovery plan builder.
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
Taxpayers, High-income filers, Small business owners
Geographic concentration
United States, Canada
Primary channel
Website — Tax season scams
Why this group is vulnerable
Taxpayers are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The rapid increase in reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- The IRS revoked the tax-exempt status of over 200 organizations in 2024 for issuing fraudulent donation receipts, and criminal charges were filed in 34 cases.
Source notes
- IRS Exempt Organizations 2024 Annual Report
Frequently asked questions
Common questions about charitable donation receipt fraud
How does the charitable donation receipt fraud work?+
Fraudulent organizations or online sellers advertise donation receipts that inflate the value of contributions, allowing buyers to claim larger tax deductions. Some operate as fake charities, accepting small donations and issuing receipts for 5-10x the actual amount, splitting the tax savings with the donor. The IRS audits the deduction, and the taxpayer faces penalties, interest, and potential prosecution for filing a false return.
What are the warning signs of charitable donation receipt fraud?+
Charity offers donation receipts worth more than the actual amount donated Organization is not listed on the IRS Tax Exempt Organization Search tool Receipt lacks a proper EIN (Employer Identification Number) or organization address
What should I do if I encounter charitable donation receipt fraud?+
Verify any charity's tax-exempt status using the IRS Tax Exempt Organization Search at irs.gov/charities. Keep detailed records of all donations including bank statements and written acknowledgment from the charity. Report suspected charity fraud to the IRS using Form 13909 (Tax-Exempt Organization Complaint).
Who is most at risk for charitable donation receipt fraud?+
This scam primarily targets Taxpayers, High-income filers, Small business owners. It is most commonly reported in United States, Canada and typically appears on Website.
Is charitable donation receipt fraud getting worse?+
charitable donation receipt fraud is currently surging — reports are increasing rapidly. It has been reported across US, CA. Last updated 2026-04-04.
Related scams
Similar scams to watch out for
Government impersonation
↑ 121%Tax refund verification phishing scam
A fake refund or filing problem message pressures the victim to verify tax identity through a counterfeit government portal.
What to do first
Go directly to the tax authority website instead of using message links.
Targets
Tax filers
Seen in
U.S.
Smishing
↓ 16%Tax agency refund text link scam
A text says a refund or filing issue needs immediate identity confirmation through a mobile link.
What to do first
Use the tax authority's official website instead of the text.
Targets
Tax filers
Seen in
U.S.
Government impersonation
↑ 52%Census or survey data harvest scam
A fake government survey or census call collects identity, household, or banking data under the banner of compliance.
What to do first
Verify the survey through the agency website before participating.
Targets
Households
Seen in
Global
Help someone avoid this scam.
Scammers succeed because people do not talk about it. If you or someone you know has been affected, there is no shame in it — it happens to millions of people every year. Share this page with friends and family so they know what to look for.
Relevant collections